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Property Loans
A 'property' loan or 'home' loan is a way of borrowing money against the value of your home or other property, where the property itself is offered as security for the benefit of the lender.
This type of loan is also known as a 'secured' loan, because the loan is secured on the property. This means that if the borrower defaults on the loan by not making the correct payments, the lender could ultimately obtain possession and sell the property in order to recover the money that is owed.
The advantage to the borrower is that the rate of interest charged on the amount borrowed is usually much lower compared with other types of loan that are referred to as 'unsecured', which includes store cards and credit cards. The main disadvantage of this kind of loan is that the borrower risks having their home taken away if they fail to make the necessary repayments to the lender.
Provided you own your home, whether or not you already have an existing mortgage, you can also apply for property loan. The lender will need to check whether the current value of the property is sufficiently high to cover the new loan. If you already have a mortgage, then an additional loan that is secured on the same property is generally referred to a 'second mortgage'.
The money you borrow as a property loan can normally be used to pay for anything you like, but the loan still needs to be repaid with regular monthly payments, according to the terms of the loan agreement.
For further information about all property and home loans click here for specialist advice and quotation.
NOTICE: A mortgage is a loan that is secured on your home and you also need to think carefully before securing any other debts against your home. Your home could be taken away by the lender and sold if you do not keep up the repayments on the mortgage or any other debt secured on it. These notes are offered as a general guide only and do not constitute financial or legal advice.
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